Avanos Medical names David Pacitti as new CEO

ALPHARETTA, Ga. - Avanos Medical, Inc. (NYSE: AVNS), a medical technology company with annual revenues of $687.8 million and currently trading near its 52-week low, announced today the appointment of David Pacitti as its new chief executive officer, set to take the helm on April 14, 2025. According to InvestingPro analysis, the company appears undervalued at current market prices. Pacitti, who is transitioning from his role as president of Siemens Medical Solutions USA, Inc. and Head of the Americas at Siemens Healthineers, brings a wealth of experience to Avanos, a company known for its medical device solutions aimed at improving patient outcomes and reducing opioid use.

With a career spanning over two decades in the healthcare sector, Pacitti has held several leadership roles, including division vice president of U.S. commercial operations at Abbott Vascular, where he was instrumental in launching key product franchises. His tenure at Siemens Healthineers was marked by strategic growth and operational achievements across North and Latin America, overseeing a broad portfolio that included medical imaging and laboratory diagnostics.

Gary Blackford, chair of the Avanos board of directors, expressed confidence in Pacitti’s ability to steer the company into its next growth phase, citing his industry expertise and strategic vision. Pacitti himself acknowledged the opportunity at Avanos to build on its success and drive long-term value for stakeholders.

Pacitti’s leadership extends beyond his corporate roles, as he serves on several boards, including the AdvaMed Medical Imaging Technology Division, Orchestra BioMed, and the Siemens Foundation. His involvement with various councils and advisory groups reflects his commitment to broader industry and community engagement.

Avanos Medical, headquartered in Alpharetta, Georgia, focuses on developing and marketing medical devices that address critical healthcare needs. The company holds leading market positions in various product categories and is dedicated to helping patients transition from hospital to home care. With a robust gross profit margin of 55.4% and a healthy liquidity position reflected in its current ratio of 2.37, the company maintains a strong financial foundation. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, part of the platform’s coverage of over 1,400 US stocks.

This leadership change comes at a time when the medical technology industry continues to evolve, with companies like Avanos at the forefront of innovation and patient care. Analysts tracked by InvestingPro expect the company to return to profitability in 2025, with projected earnings per share of $1.16. The announcement is based on a press release statement from Avanos Medical.

In other recent news, Avanos Medical Inc. reported better-than-expected financial results for the fourth quarter of 2024. The company’s earnings per share (EPS) reached $0.43, surpassing the anticipated $0.40, while revenue climbed to $179.6 million, exceeding the forecasted $177.23 million. Additionally, Avanos completed the sale of its Respiratory Health business, marking a significant step in its ongoing transformation efforts. The company is targeting long-term gross margins of over 60%, with plans to focus on organic growth in its Specialty Nutrition Systems segment. Avanos has also set a net sales guidance for 2025 of $665 million to $685 million, with an adjusted EPS guidance of $1.05 to $1.25. In a move to streamline its business, Avanos will start reporting under three operating segments beginning in 2025. The company remains committed to disciplined execution and is exploring mergers and acquisitions in the Specialty Nutrition Systems segment. These developments reflect Avanos’ strategic focus on enhancing its financial profile and operational efficiency.

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